A new study by Social Catfish reveals that holiday gift-givers are facing an increase in online scams, with Florida ranking third in the nation by losing a record $874.2 million last year.
Social Catfish, a company that specializes in reverse search lookups, reports that the state currently ranks second in the nation for the number of scam victims per capita, with 1,563 victims for every 100,000 residents. The company notes that this time of year is particularly lucrative for scammers, as Americans are expected to spend a record $240 billion on online gifts this holiday season. This creates unprecedented opportunities for fraudsters to target those looking to give gifts.
In its report, Social Catfish presents the findings from the State of Online Scams 2024, using the most recent data from the FBI and FTC, along with trends from millions of users on its website.
Fraudsters are using AI to launch more personalized and sophisticated attacks, but online shoppers can stay safe by knowing what to look for.
4 Online Holiday Shopping Scams and How to Avoid Them:
1) Look-a-Like Stores with AI Chatbots: Fake e-commerce websites that mimic trusted brands use AI customer service reps to answer questions in real time creating a sense of legitimacy.
How to Avoid: Carefully check the retailer’s URL (e.g., “Macys.com” vs. “Maceys.com”).
2) Deepfake Videos of Public Figures: Deepfake videos make it look like trusted public figures are promoting Black Friday deals in ads or social media.
How to Avoid: Audio not matching, one facial expression, one tone of voice, extra body parts.
3) Discounted Gift Cards: Phony marketplaces are selling “discounted” gift cards that have a zero balance.
How to Avoid Them: Perform a reverse search to verify the seller’s identity.
4) Suspicious Activity Alert: Consumers receive an alert of suspicious activity and must call to verify their account where an AI customer service rep steals their information.
How to Avoid: Contact the company only by using the main number on their website.
Americans lost a record $12.5 billion to online scams in 2023, an increase from $10.3 billion in 2022, according to the Federal Bureau of Investigation Internet Crime Complaint Center (IC3). An unprecedented 39% of victims were scammed using AI deepfake technology.
Despite increased national awareness and regular warnings from the government, financial institutions and private companies in the Internet safety space, the perpetrators have been able to keep flourishing, setting new records year after year.
